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January 2018 Archives

What transpired in venture capital in 2017

Entrepreneurs in Colorado and throughout the country often rely on venture capital to help their companies succeed. In 2017, business owners received $84.2 billion in funding from venture capital firms according to the National Venture Capital Association and Pitchbook. However, there were fewer deals done as the tech industry is going through a period of contraction. This is partially because the median age of companies seeking capital has increased since 2013. The median age of companies seeking Series A funding is about 3.5 years.

Venture capital hits $84 billion high not seen since dot-com boom

Venture capital investment in 2017 reached levels not seen since the dot-com boom that occurred more than 15 years ago. Entrepreneurs in Colorado may be interested to learn that some $84 billion was provided to more than 8,000 business ventures behind a variety of products and services. Sources of funding included angel investors, seed capital specialists and firms specializing in high-risk business ventures.

The effect of gender equality in the investing space

In a world that is moving towards gender equality, numerous beacons pop up in Colorado and elsewhere throughout the country to help light the way forward. A case in point is a San Francisco woman who is an angel investor thriving in an industry that is male-dominated. For context, 7.4% of angel investors are female, and this imbalance affects who ends up being funded. Consequently, this woman strives to level the playing field and offer female entrepreneurs the same opportunities afforded to their male counterparts.

How to pique the interest of a CVC

Colorado startup business owners may be interested in knowing that 75 of the Fortune 100 companies provide some sort of corporate venture capital (CVC). However, these companies will not invest in just any startup. To improve the odds of securing an investment, a startup will strive to have as much diversity as possible in its team of founders. This is because that team will have a variety of backgrounds and skills from which to pull.

Stock options may be easier to exercise

New tax rules may alter the way Colorado startup companies think about distributing equity to employees. If a startup offers stock options to at least 80 percent of its workforce, it may be possible to ease the tax consequence that come with them. In most cases, stock options must be exercised within 10 years. However, if an employee leaves the startup, those options may need to be exercised within three months.

Profane trademarks are protected free speech, court rules

Many entrepreneurs in Colorado and across the United States want to protect their ideas and the unique labels they have created for them through the trademark process. It can provide specific protection for a business name, and a memorable one can be a huge part of any company's marketing plan. Filing for a trademark can involve significant preparation and concern about meeting various laws and regulations that govern the process.